1. The Association of Colleges is the representative
body for further education colleges, established by colleges themselves
to provide a voice for the FE sector at national level. The membership
includes colleges of all typesgeneral further education,
sixth form, agricultural and horticultural, art design and performing
arts, and other specialist colleges. Membership covers colleges
in England, Wales (through affiliation arrangements with Fforwm)
and Northern Ireland (through the Association of Northern Ireland
Colleges). Some 99 per cent of colleges in the three countries
are in membership.

2. The Association welcomes the decision
of the Committee to conduct an inquiry into the New Deal for Young
People. While it shares the view that overall the New Deal has
been a considerable success, and that the Government's decision
to make it permanent is fully justified, it believes that some
two years after the national roll-out it is timely to undertake
a critical review of experience to date, and in particular to
consider whether design changes are needed to take account of
that experience. It believes also that the reforms now being undertaken
in the structure of post-16 education and trainingnotably
the unification of most post-16 learning programmes under the
auspices of the Learning and Skills Council, and the associated
transfer of responsibility for work-based training for adults
to the Employment Servicecreate a new environment in which
some fresh questions arise.

3. Accordingly, this memorandum:

 Outlines some of the experience of
colleges in providing opportunities under New Deal for Young People;

 Identifies some issues about the
operation of NDYP which have emerged from that experience;

 Offers some views about aspects of
the design of NDYP which might require further consideration;
and

 Comments upon some of the wider questions
which arise in relation to the structural changes now in train.

It does not seek to comment upon the wider economic
questions about the contribution of New Deal to improving the
skills and employability of young people.

GENERAL

4. Further education colleges have a long
history of involvement in Government training programmes for the
unemployed and in providing learning opportunities for those who
have seen the acquisition of new skills, knowledge and qualifications
as a key to moving out of unemployment, with or without direct
Government support. Thus the FE sector made a major contribution
to programmes such as youth training and work-based training for
adults, and provided for substantial numbers of those studying
while on unemployment or related benefits (under the 16-hour rule
or its predecessor), alongside their commitment to widening participation
for all. The limitations and constraints of those arrangements
were widely seen as inhibiting a full contribution from the FE
sector towards tackling the scourge of unemployment. Colleges
consequently welcomed the initiative taken by the present government
to launch a new approach towards tackling those problems and enthusiastically
committed themselves to participation in the New Deal programmes.

College Involvement in NDYP

5. The extent of that commitment has been
well demonstrated since the launch of NDYP in early 1998. A considerable
number of colleges joined the consortia which bid for the initial
New Deal contracts, in many cases as a full partner, and many
of those were successful. Colleges were well-placed to add considerable
value to those consortia, offering as they could access to a wide
range of learning programmes, as well as considerable experience
of providing for the unemployed and the disadvantaged. Even where
colleges were not partners in a successful consortium, they have
in many instances contributed to the scheme as sub-contractors
providing of education and training to a consortium, typically
alongside private training providers. The primary contribution
of colleges has been to the full-time education and training option,
but colleges have also provided an off-the-job training component
to other options, such as the Employment, Environment Task Force
or Voluntary options. In a few instances colleges have taken lead
responsibility for the delivery of other options (such as Self
Employment) or have been involved in delivering the Gateway. Many
colleges have appointed dedicated staff to manage their involvement
in NDYP programmes.

Volumes

6. Detailed data on the volume of college-based
activity does not appear to be available, but it would be reasonable
to assume that a significant proportion of the 80,000 or so young
people who have entered the FTET option since its inception have
been provided for in colleges, together with a smaller proportion
of the 100,000 or so entering other options. This should be seen
in the context of an enrolment of close to four million students
per annum within the FE sector. New Deal thus accounts for only
a very small proportion of college activity, and the number involved
are probably substantially less than those studying while claiming
JSA under the 16-hour rule, prior to the introduction of New Deal
(significant numbers of whom are now within the New Deal cohort).
With the exception of some colleges in London and other inner
city areas, most colleges have had only a relatively small number
of NDYP clients, usually spread over a range of learning programmes.

Quality

7. The results of inspections undertaken
to date by the Training Standards Council suggests that quality
of provision within NDYP is in most areas only satisfactory, with
most having at least one unsatisfactory component. Only rarely
is provision good or outstanding. Provision in the FTET option
is generally graded lower than the average for other options.
However, it is not possible to isolate data on the quality of
the college contribution, given the multiplicity of providers
for this option in most areas. Inspection data suggests moreover
that in many areas a disappointingly small proportion of clients
undertaking this option achieve a full qualification. Typically
too, a lower proportion of levers from FTET enter employment either
before or on completion of the programme. Moreover, although NDYP
has shown considerable success in overall placing young people
into employment, longer-term sustainability of employment among
those who have pursued an option is more questionable. For example,
some over 240,000 have entered jobs overall, of which 76 per cent
persisted for at least 13 weeks. However, a more detailed study
of those entering subsidised employment showed only 62 per cent
remaining at the end of the employment subsidy period of six months,
falling to 51 per cent after nine months.

Client Characteristics

8. However, while success rates are noticeably
lower than those for many other full-time education and training
programmes, they need to be seen in the context of the characteristics
of NDYP entrants. Entry data for clients with known qualifications
suggests that some 31 per cent of entrants have no qualifications
and a further 22 per cent at Foundation or Level 1. Many clients
also possess a multiplicity of social and personal problems, with
disproportionate numbers having health problems or disabilities,
criminal records, drug or alcohol abuse problems, housing problems,
or relationship difficulties, and often display poor attitudes
and lack of motivation. The FTET option is well-focused to deal
with such clients, providing as it does opportunities for more
extended diagnosis and intensive support. Such support is often
vital to maintaining clients on NDYP and in effecting the changes
in outlook and behaviour which will improve employability. Colleges
typically will offer a very wide range of learning programmes
and will accept any client referred by a personal adviser, and
frequently find it necessary to offer intensive support to deal
with such problems.

9. The following case study illustrates
some of these issues. Darren is 23 years old. Prior to joining
New Deal he had a number of temporary, low skilled jobsmainly
in the food processing industry. At school he only managed to
achieve one GCSE and since then had not completed any work-related
qualifications. On a personal level he had severe financial problems
and was living a fairly lonely existence in a high rise tower
block in a provincial city. On joining the college, staff became
aware of the extent of his personal problems. Working closely
with him staff were able to help him confront and solve many of
the difficulties he faced, which at that time were threatening
to overwhelm him. With their support, Darren gradually began to
get his life back on track. For the first time in many years he
was able to prove to himself he could be a success and this new
found spirit helped him to achieve a GNVQ Intermediate Award in
Retail and Distribution and Information Technology. Although not
currently employed, Darren has joined a local Territorial Army
unit which has helped to give him a new found sense of purpose
and discipline as well as helping him to develop the personal
skills which will hold him in good stead for the future.

Liaison between ES and the FE Sector

10. To assist in liaison between the FE
sector and the Employment service the Association arranged, in
conjunction with ES and FEFC, the appointment of a secondee to
work with ES. That appointment ran from summer 1999 until summer
2000 and proved to be of considerable value in making ES aware
of emerging practice and issues in FE colleges, and in familiarising
colleges with New Deal requirements, resolving issues, and disseminating
good practice. An important outcome of that work has been a good
practice guide, drawing upon the experiences of four colleges,
which has now been circulated within the sector. A copy is enclosed
with this memorandum for the information of the Committee.

SOME DESIGN
ISSUES

Organisation/Partnership

11. The encouragement given by ES in the
initial stages of launching NDYP to the formation of consortia
or partnerships for delivery has undoubtedly had considerable
benefits in bringing together a variety of bodies both public
and private. In doing so it has been able to tap into a rich seam
of concern to help tackle the problems of unemployment and to
mobilise a wide range of expertise. However, many partnerships
draw on a considerable number of providers, which creates problems
of management and co-ordination, and it has been a common experience
of many participants that client numbers are low. For many providers
this has raised questions about continued participation, and some
colleges have found it necessary to reconsider involvement in
parts of the programme at least.

12. In addition, TECs play an important
role in many consortia. With the dissolution of TECs next year
and the transfer of TEC functions in the adult training field
to ES itself, consortia will need to be restructured if separation
between contractor and providers is to be maintained for NDYP
provision. In addition, the importance of co-ordination between
New Deal provision and other post-16 education and training programmes
will become more evident as the new local LSCs structures become
established. For example, the assessment of local employment needs
and planning a provision to meet these needs will be functions
which span programmes both for the unemployed, those already in
employment and those preparing to enter the labour market. There
are moreover already a considerable number of partnership arrangements
in existence both for planning and delivery purposes, which from
the point of view of participants require a considerable investment
of management time and resources. In the view of the Association,
there will be a pressing need to address these issues if partnership
mechanisms are not to become unwieldy and counterproductive.

Objectives of New Deal

13. The ultimate objective of NDYP and other
New Deal programmes is to seek to establish or re-establish clients
in sustained employment. It is the experience of colleges that
the need to secure placement in employment can in some instances
override the need to equip individual clients with the skills
and knowledge which will secure longer-term employability. The
case study quoted above illustrates the extent of the personal
support required by many individual clients, and it is clear from
the growing numbers on follow-through that the current limits
on participation in NDYP does not allow clients to progress to
the point where employability is established. The data on persistence
likewise shows that sustainability of employment remains a problem
even in a period of high economic activityas the Committee
recognised in its recommendations and in an earlier report (New
Deal for Young People: Two Years On, HC 510 Session 1999-2000).
There is an overwhelming evidence to show that the possession
of qualifications which demonstrate the possession of personal
attributes required for success in employment, as well as of skills
and knowledge relevant to particular jobs, is an important consideration
for employers in assessing suitability for employment. It needs
also to be recognised that there are many qualifications outside
the present Schedule 2 list which may be important in securing
employmentsuch as a driving licence or some dedicated computing
qualifications. For the more disadvantages, a much greater initial
emphasis of the development of social skills can be equally important.
It would be the belief of the Association that while the ultimate
objective of a job should remain, there should be greater flexibility
in the length, content and range of the programme to reflect these
factors, and a greater emphasis on the development of attributes
which will secure long term employability. It believes that this
would be consistent with the Government's wider policy objectives
for lifelong learning, in improving individual opportunity, enhancing
skill supply and supporting national competitiveness.

Relationship with ES

14. Involvement in NDYP has brought much
closer working relationships between colleges and ES than existed
previously, and in doing so broken down some of the barriers which
previously existed. But there remain tensions on occasions, especially
when regulations do not seem to work in the best interests of
clientsfor example, when a client recovering from drug
dependency may be showing measurable improvement in attendance,
but not within the timetable allowed in the absence regulations.
A number of colleges have reported disputes over payment for components
of an agreed FTET programme, and inconsistencies between Units
of Delivery in the application of the regulations. For example,
some areas will permit alteration to a client's training plan
to reflect changing needs, others will not. Another example would
be where the drive to achieve job placement targets overrides
the desire of clients and colleges to complete an agreed learning
programme. Although many clients who are job-ready are eager to
accept a job if a suitable vacancy occurs, some perceive that
their own longer term interest is best served by completing the
Initial Training Plan and achieving a qualification: in such circumstances
a college may face a dilemma if pressure is brought to bear on
clients to leave FTET in order to accept a job offer where there
is no opportunity to progress study. These tensions are further
illustrated in the job entry targets set at local level for FTET
provision, which are not always fully discussed in advance and
are not always sensitive to local circumstances. These create
pressure on providers not merely to move clients on more quickly
than they might wish, but also to become more selective in the
admission of clientsultimately to the detriment of clients.
In the view of the Association efforts need to be made between
ES and colleges to develop a range of measures, and related targets,
which can reflect the progress made.

Role of New Deal Personal Adviser

15. The creation of personal advisers has
undoubtedly been a strength of NDYP, and the emphasis on assessment
of individual client needs has been a considerable improvement
on previous training programmes for the unemployed. However, college
experience has been that the quality of the initial assessment
and advice can vary considerably, or that communication has been
poor, with the result that colleges find it necessary to carry
out their own assessment of clients capabilities and needs in
areas such as basic skills, before they can determine an appropriate
learning programme. Clients understandably can find that demotivating.
Evaluation of the outcome of the Gateway process against clear
criteria for outcomes might help to improve retention and achievement.
It might also be valuable for the Gateway process to be subject
to inspection. Understanding of the nature of training programmes
and qualifications such as NVQs is also often lacking on the part
of personal advisers and inappropriate guidance given on the nature
of the programme which needs to be followed. Further training
of NDPAs would be of assistance in overcoming these problems.

Funding

16. Although providers were invited to propose
prices for provision as part of the original bidding process for
NDYP provision, indicative price bands were determined in advance
by ES for FTET provision, and it has been evident in operation
that only limited flexibility has been allowed. The price levels
now operative are significantly below those used by FEFC for the
same full-time course provision, apparently on the basis of a
view that it should only be necessary for ES to pay for the marginal
costs of provision. Nor has any account been taken of either the
extra contractual demands for NDYP programmes (for example, the
requirement to provide supervision for 30 hours per week, or the
need to provide an on-going learning programme during periods
of course closure), the additional support which many individual
clients require, or the extra costs involved in administration,
travel, equipment and other activities needed to deliver programmes.
Coupled with the low numbers recruited this has meant that most
college provision has operated at a financial loss. As an example,
one college has estimated that involvement in NDYP has cost it
around £70,000. While there are important differences between
ND FTET and what will shortly become LSC-funded provision, in
terms for example of their ultimate objectives, it is difficult
to see any fundamental case for different public funding levels
for similar provision in different sectors. The need to harmonise
ES and LSC prices has been recognised in the DfEE Learning
to Succeed: Post-16 Funding and allocations, First and Second
Technical Consultation Papers on the new funding methodology,
but as yet the details of pricing levels and the specific differences
have not been published. In the view of the Association it will
be important that funding arrangements between LSC an ES are as
closely aligned as possible.

Individual incentives

17. Clients pursuing FTET courses continue
to receive JSA at the standard rate, while those attending work-based
training for adults for example, receive an incentive of £10
pr week on top of their JSA. In college experience, this difference
in treatment is felt acutely by ND clients, which is reinforced
by the administrative requirements placed on trainees (for example
the requirement for signing timesheets). The lack of any obvious
incentive can also affect adversely the motivation to pursue training.
Moreover, many clients are living in poverty, and college staff
frequently spend considerable amounts of time assisting clients
in obtaining help. At the same time, clients attending FTET undoubtedly
face additional costs associated with study which are not recognised
in current arrangements. In the view of the Association, it would
be desirable for ND clients to receive some additional paymentwhich
could be linked to attendance and academic progressto provide
an incentive to pursue study.

Roll-on Roll-off

18. NDYP regulations require that clients
should be placed on learning programmes within two weeks of determination
that entry to an FTET programme is appropriate. For colleges,
the low numbers of clients and the commitment to offer a wide
range of course has meant that clients have almost exclusively
been in-filled to existing learning programmes, rather than being
placed on dedicated provision. This has however presented colleges
with a number of challenges. Although courses are increasingly
being offered on a roll-on roll-off basis, this is by no means
universal and it is not always possible to admit an additional
student to an existing course without intensive preparatory work,
which the client may find it difficult to cope with. Even where
this can be accomplished quickly, there may be constraints in
terms of the capacity of the accommodation available, or constraints
imposed by health and safety considerations (for example, in workshop
situations).

19. At the same time, the continuous nature
of NDYP programmes requires colleges to provide ongoing learning
and support, even at times when other learners are not in attendancesuch
as holiday periods. Many colleges found this a problem in the
early stages of NDYP, but good practice has now been widely developed
(although this is often expensive). Even where these organisational
obstacles can be overcome, the social integration of an additional
student in an existing group can present problems, both for teachers,
for the client and for other learners. While recognising the importance
of ensuring no undue delay in transferring a client from Gateway
into FTET, if motivation is to be maintained, in the view of the
Association, greater flexibility is required in managing that
transition if the needs of clients are to be adequately met.

Job Search and Work Experience

20. Under current NDYP regulations, continuing
job search is a requirement of FTET programmesinterpreted
in some areas as a requirement to timetable three hours of job
search activity as part of the learning programme. Inspection
reports suggest that this is an element of FTET programmes which
receives insufficient attention. However, it is the experience
of many colleges that clients resent the emphasis on job search,
as being a distraction from the main qualification objective.
Moreover, the skills development component of job search is often
covered in intensive Gateway programmes, and repeated coverage
can be counterproductive. In many areas too, there are a limited
number of employer contacts which individual clients can pursue,
and repeated contacts may be counterproductive. In the view of
the Association, while the development of job search skills must
remain an important component of FTET programmes, the timing and
emphasis should be tailored to match the actual progression needs
of individual clients. Similar issues have arisen for some colleges
in relation to the insistence on work experience as a component
of FTET programmes, where placement into an employers premises
of a client who is not job-ready and who may present health and
safety risks.

Programme Duration

21. As noted above, many NDYP clients have
few, if any, qualifications and their experience of learning is
often negative. Study skills are lacking and many find it difficult
to focus on learning for 30 hours per week (exclusive of lunch
breaks) over five days each week, as required under ND regulations.
In contrast, those attending work-based training for adults are
only required to attend for 21 hours per week. Similarly, JSA
regulations ensure ND clients are only permitted 10 days holiday,
even on learning programmes extending over 52 weeks. While building
up an appreciation of the importance of time-keeping and maintaining
focus over an extended period is an important part of developing
the disciplines required for working life, college experience
suggests some greater flexibility might be desirableat
least in the early stages of FTET programmesas these habits
are developed in clients. In addition, while for many occupational
areas the current limit of 52 weeks is sufficient to complete
an appropriate learning programme, experience suggests that for
some clientsespecially those pursuing technical trainingthis
limit does not permit completion of training to recognised industry
levels. It would be invidious if individuals were denied the opportunity
to achieve a qualification for which they are well suited and
to which they are committed, and are forced to choose a less satisfactory
alternative. The Association believes that additional flexibility
to extend programmes should be available where necessary.

Quality Assurance, Audit and Accountability

22. The operation of separate quality assurance,
audit and accountability arrangements for NDYP has also imposed
additional burdens on colleges. Colleges within the FE sector
are required to operate within a framework laid down by FEFC,
but in addition are required to provide monitoring information
to other funding providers such as TECs or ESF in respect of particular
programmes. They re also subject to inspection by TSC in respect
of New Deal and TEC-funded programmes, even where these overlap
with FEFC-funded work, and may also be audited separately in respect
of that work. The Association strongly believe it would be desirable
for these arrangements to be streamlined within the new framework
being created for post-16 learning and skills programmes, and
in particular for ES requirements to be aligned with, and as far
as possible rely on, those of LSC. These issues have been recognised
in Government thinking (in for example the consultation paper
Raising Standards in Post-16 learning published last summer)
but as yet it is unclear how far a single approach will be achieved
in practice.

SUMMARY

23. In the experience of the FE sector,
NDYP has had considerable success in achieving its objectives
of moving unemployed young people into jobs. Colleges have been
pleased to make a contribution to that success. The design of
the scheme introduced a number of innovationssuch as the
personal adviser and the extensive initial assessment and preparation
process in the form of the Gatewaywhich have clearly brought
strength to the programme. But in the experience of colleges there
are a number of areas where from a college perspective weaknesses
have been identified in operation, which in the view of the Association
need to be addressed now that the scheme is to be made permanent.
In particular it recommends:

 the issues surrounding partnership
structures need to be addressed if these are not to become unwieldy
and counterproductive;

 that while the ultimate objective
of NDYP of successful transition into sustained employment should
remain, there should be greater flexibility in the length and
content of the programme to reflect the needs of individual clients,
and a greater emphasis on the development of attributes which
will secure long term employability;

 efforts need to be made between ES
and colleges to achieve a common understanding of what is in the
best interests of clients and to shape individual programmes accordingly;

 further training of NDPAs would be
of assistance in overcoming some of the problems which have been
encountered when clients move from the Gateway into options;

 that funding arrangements between
LSC and ES are as closely aligned as possible;

 it would be desirable for ND clients
to receive some additional paymentwhich could be linked
to attendance and academic progressto provide an incentive
to pursue study;

 while the importance of maintaining
momentum through early access to FTET opportunities is acknowledged,
greater flexibility is required in managing that transition from
Gateway into FTET if the needs of clients are to be adequately
met;

 while the development of job search
skills must remain an important component of FTET programmes,
the timing and emphasis should be tailored to match the actual
progression needs of individual clients;

 additional flexibility to vary and
extend FTET programmes should be available where necessary to
respond to the needs of individual clients; and

 quality assurance, audit and accountability
arrangements should be streamlined within the new framework being
created for post-16 learning and skills programmes, and in particular
ES requirements should be aligned with, and as far as possible
rely on, those of LSC.